South Korean PPRC pipe prices retreat in Turkey

PP random copolymer (PPRC) pipe type 3 prices from South Korea to Turkey have been gradually decreasing since mid-March. At the beginning of March, offers for this origin was as high as $1470/ton CIF Turkey, subject to 1% customs duty, cash. Deals were concluded $20/ton below initial March levels at $1450/ton in the following week. This was despite the €50/ton higher March propylene contracts and tight PP copolymer availability from Europe.

This week, South Korean PPRC pipe type 3 prices posted further decreases of $20-50/ton for April to be reported at $1400-1430/ton with the same terms.

Expectations call for further price cuts for this grade over the coming days as demand remains mediocre given the fact that converters are not in a hurry to buy material. “We have some en-route materials that are due to arrive in 7-10 days. Moreover, a supplier of ours told us to wait for next week as more competitive prices could emerge from Korean sources,” said a pipe manufacturer.

Not only lower spot propylene costs in Asia compared to early March but also the smaller than expected hikes in April propylene settlements in Europe and the news that LyondellBasell is set to resume operations at its Brindisi PP plant support the softening expectations.